Investing in Singapore Properties

“It is not an individual have buy but when you sell that makes distinction is the successful to your profit”.

Hence I consistently advise my investors to take care that they have gone through their financial plans thoroughly as they will be entering into a 4-year commitment – after taking into consideration the 4-year Seller’s Stamp Duty (SSD) that they must pay if they sell their property before 4 years.

Once they have determined the amount of finances they are willing to outlay, they will set themselves at a gift by entering the property market and generating second income from rental yields regarding putting their cash staying with you. Based on the current market, I would advise may keep a lookout virtually any good investment property where prices have dropped more than 10% rather than putting it in a fixed deposit which pays three.5% and does not hedge against inflation which currently stands at 5.7%.

In this aspect, jade scape my investors and I take presctiption the same page – we prefer to reap the benefits of the current low interest rate and put our benefit property assets to generate a positive cash flow via rental income. I myself have personally seen some properties generating positive monthly cash flow of as high as $1500 after off-setting mortgage costs. This equates to an annual passive income up to $18 000 per annum which easily beats returns from fixed deposits furthermore outperforms dividend returns from stocks.

Even though prices of private properties have continued to increase despite the economic uncertainty, we notice that the effect of the cooling measures have lead to a slower rise in prices as in comparison to 2010.

Currently, we observe that although property prices are holding up, sales are beginning to stagnate. I will attribute this on the following 2 reasons:

1) Many owners’ unwillingness to sell at lower prices and buyers’ unwillingness to commit into a higher the price tag.

2) Existing demand for properties exceeding supply due to owners finding yourself in no hurry to sell, consequently in order to a rise in prices.

I would advise investors to view their Singapore property assets as long-term investments. Will need to not be excessively alarmed by a slowdown associated with property market as their assets will consistently benefit in time and increasing amount of value as a result of following:

a) Good governance in Singapore

b) Land scarcity in Singapore, and,

c) Inflation which will set and upward pressure on prices

For buyers who would like invest consist of types of properties besides the residential segment (such as New Launches & Resales), they furthermore consider purchasing shophouses which likewise will help generate passive income; and are not subject to the recent government cooling measures similar to the 16% SSD and 40% downpayment required on homes.

I cannot help but stress the significance of having ‘holding power’. You should never be forced to sell house (and develop a loss) even during a downturn. Be aware that the property market moves in a cyclical pattern and require to sell only during an uptrend.